Pichler: SXSW-style conference for Cincinnati?

Mar. 16, 2013

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AUSTIN, TEXAS — The first thing to realize about South by Southwest is that it can’t, and shouldn’t, be recreated in Cincinnati. About 25,000 entrepreneurs, brand managers, venture capitalists and wannabe techies swarmed all over Austin in a weeklong digital frenzy that’s impossible to visualize elsewhere.

But that doesn’t mean we shouldn’t create our own conference that leverages the region’s maturing entrepreneurial ecosystem and strength in consumer marketing. The opportunity to connect with our startups, investors and executives from companies like Procter & Gamble, Kroger and Macy’s would be a powerful draw.

The idea has plenty of local currency. Dave Knox, co-founder of The Brandery, said, “There are opportunities for sure, but we need to avoid the trap of just trying to copy SXSW.

“There is an opportunity for something that is more about bringing brands and startups together,” said Knox, who’s also chief marketing officer at Rockfish Interactive, a full-service digital agency. “It’s not just about being a digital conference – we've tried that with little success – but being something truly unique in the conference landscape.”

The Brandery, an accelerator for consumer marketing and branding startups, already has proven it can draw the mix of people that makes SXSW a destination for entrepreneurs and those who fund them.

Last year’s Brandery Demo Day at Great American Ball Park attracted more than 400 people, including about 125 investors from around the country. The event allowed companies in The Brandery to showcase their work.

You can’t totally quantify the value of an event like Demo Day, but think of it this way: Assume a Brandery startup ended up talking to 10 potential investors based around the country that day. Now consider the time and money it would take that startup to arrange and attend meetings with those firms. The cost would be prohibitive. And that doesn’t factor in the lost networking and relationship-building opportunities.

Demo Day is just one example of why national investors are paying attention to our region. Think about some of our other strengths.

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CincyTech, the public-private seed-stage investor that has invested $13 million in 41 Southwest Ohio companies, drew more than 600 guests to its annual meeting in November.

UpTech, Northern Kentucky’s business accelerator, is about to enter its second year. The nationally recognized Queen City Angels, a group of seed-stage investors, has invested in more than 50 startups.

Cincinnati Children’s Hospital Medical Center was on several investors’ radar in Austin due to its potential to commercialize technology that leads to companies like AssureRx Health Inc., the fast-growing medical informatics business based in Mason.

And now there’s Cintrifuse, the regional effort launched last year to jump-start promising startups through three key elements: a massive first fund of funds that’s expected to close with between $50 million and $100 million; the promise of corporate engagement from companies like P&G and Kroger within the start­up community; and a physical location designed to be a one-stop center for entrepreneurs.

Above it all is Cincinnati’s reputation for brand management and Ohio’s reputation as a forward-thinking state thanks to Ohio Third Frontier, a voter-approved initiative that uses public dollars to help create technology-based products, companies, industries and jobs.

The chance to meet representatives from any or all of the above organizations in one trip is a pretty good value proposition for national and international investors and entrepreneurs.

We’re definitely getting traction. Houston-based Mercury Fund is a seed-stage firm that focuses on Midcontinent startups, from Pennsylvania to Utah, Texas and Michigan.

The fund primarily invests in software and science-based startups. Its investments include ShareThis, the social media company founded by Tim Schigel, who is its chairman and also Cintrifuse’s fund of funds manager.

“We’re really bullish on Ohio overall,” said Blair Garrou, managing director of Mercury Fund and a Share­This board member. “It’s really interesting to us as a fund watching all of this working in areas of the country that are traditionally ignored by venture capitalists.”

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Garrou said the fund plans to increase its footprint in Cincinnati. And remember, Garrou is already plugged in here through his relationships with players like Schigel, Jack Wyant of Blue Chip Venture Co., and the Brandery co-founders. How many other Mercury Funds are out there that would benefit from an annual conference in Cincinnati, not to mention the startups that are based here?

“It just makes perfect sense,” said Rodney Williams, co-founder and CEO of the startup Lisnr. “Imagine being able to have panels, being able to connect the brands that are here with what’s going on, giving startups a chance to showcase themselves, giving the startups the ability to gain traction.”

Michael Bergman, CEO and co-founder of startup REPP, said it can be done. Bergman organized the 2010 TEDxCincy conference, in which 22 speakers and thought leaders presented various topics to 1,000 attendees at the Aronoff Center Cincinnati.

“While Austin is a great city, I don’t see any reason why Cincinnati can’t be the same,” Bergman said. “The great thing about Cincinnati is you’ve got so many major cities within a five-hour radius, so it’s a lot easier draw.”

Williams, who has built Lisnr since fleshing out the idea at last year’s SXSW, said he feels a sense of urgency for Cincinnati to take the next step forward with an event.

“It’s one of those things … why hasn’t that happened and who’s going to do it?” ⬛